Throughout late 2022 and early 2023, ChatGPT and its incredible AI capabilities became a mainstream topic. Millions of people are interested in this chatbot, and use it for a variety of reasons. But can crypto traders also make use of this new and innovative technology? How can ChatGPT help you in your crypto dealings, and what risks should you be aware of here?

1. Giving You Market Statistics

Crypto traders and investors rely heavily on market statistics, such as prices, trading volumes, and supply, to make decisions on what assets they will buy or sell. Cryptocurrency prices are incredibly volatile, so it can be hard to keep track of how a given asset is doing.

While there are several apps that you can use to track crypto statistics, there is another better option available to you. You can always head to ChatGPT and ask it your own, personalized question about the crypto market, instead of simply checking up on general figures. This allows you to access tailored questions about cryptocurrencies, DeFi trends, and more. This could be anything from simply checking your favorite asset's current price, to assessing the trading volume of a crypto exchange you'd like to sign up for.

2. Explaining Complex Crypto Topics

The crypto and decentralized finance (DeFi) world is by no means easy to grasp. This industry is filled with different services, assets, and technological concepts, which can be overwhelming for those just starting out. In fact, the sheer volume of knowledge you need to fully understand cryptocurrency can easily put people off, making it somewhat inaccessible to many.

This is where ChatGPT can come in handy. ChatGPT is a fantastic resource for all kinds of information, including that pertaining to crypto and DeFi. If a certain concept is confusing you, ChatGPT could help to break it down into simpler terms, while also allowing you to ask the questions that matter to you.

For example, you may understand how crypto mining works, but not why it is important for blockchain security. Or, you may have a more niche question about a particular asset that you cannot find an answer to via your regular search engine. Asking ChatGPT can streamline the process, giving you immediate information without having to scroll through endless search results.

3. Giving You an Asset's History

If there's one thing you can be sure of with cryptocurrency, it's that no asset's price can remain constant for a prolonged period. Be it minimal or maximal, a given crypto's price will change multiple times a day as the market itself changes. An asset's fluid price history can indicate whether it is set to do well.

While this is not always the case, certain assets display repeated trends that ChatGPT can pick up on and relay to you. So, if you're interested in buying a type of cryptocurrency, but first want a run-through of its history, try asking ChatGPT for a quick overview.

This could help you decide whether the crypto in question is a solid investment option for you. For example, a token could be doing very well, but ChatGPT informs you that it has only recently recovered from a price drop. Or, an asset could be struggling, but ChatGPT informs you that this is very unusual.

On top of this, you could use ChatGPT to learn the background of an asset or project to ensure that there aren't any suspicious elements to it. Scams are rife in the crypto industry, so it's always worth having a little background knowledge on what you're investing in.

4. Providing Market Predictions

Crypto prices are anything but predictable. An asset's value can skyrocket or plummet in a matter of days, so it's important to be as prepared as possible for such unexpected changes.

While there's no way to know for sure what's going to happen next in the crypto space, predictions can be of some use. Because ChatGPT has access to such a wide base of information, it could play a useful role in helping you understand how the market is expected to change in the coming weeks, months, or years.

For example, you could ask ChatGPT which cryptos are up and coming or question how Bitcoin will perform over the next year. Alternatively, you may want to find out which cryptos are slated to fail, or which may soon see a healthy price hike. There's no end to the questions you can ask ChatGPT about the crypto market's future.

However, it's important to note here that crypto predictions are not always accurate. Many crypto traders and enthusiasts have made price forecasts, that only resulted in a completely opposite outcome. It is unwise to take predictions as fact, as this can come back to bite you. So, it may be better to use ChatGPT to understand market forecasts, not invest in them.

5. Keeping You Updated on Crypto News

The crypto market is vast, diverse, and ever-changing. Every day, there are new developments, launches, and scandals within the industry, and it's important to stay abreast of these stories if you're an avid trader, or if you often use crypto and DeFi platforms.

It goes without saying that there are plenty of crypto news outlets out there today, but it can be time-consuming to look through each website and each article for important information. So, if you want news that's more specific to your crypto area, try asking ChatGPT. This chatbot could provide you with to-the-point stories and updates so that you can stay on top of how the crypto market is changing.

As of writing, ChatGPT is not equipped to provide real-time information. However, real-time information can be obtained via ChatGPT plugins, which are not yet accessible to the general public but it's anticipated to become available in the near future.

An Important Note on ChatGPT and Accuracy

While ChatGPT can certainly provide you with huge amounts of information on the crypto space, there's also a stipulation here. There are many unreliable news sites out there today, from which ChatGPT may obtain information to formulate its responses.

Fake news and misinformation is a common issue throughout the internet and it also affects AI-based resources such as ChatGPT. In the crypto market, unreliable data could give way to unwise investments, poor judgment, and more.

So, it might be a good idea to fact-check the information given to you by ChatGPT, as there's a chance the chatbot could provide you with data from less reputable sources.

ChatGPT Can Be Useful in Crypto Trading

It's clear that ChatGPT can be a useful resource in your crypto dealings, but it's important to remember that there is a lot of misinformation circulating the web. So, if you want to use ChatGPT for crypto stats, news, or predictions, be sure to fact-check the chatbot's answers to make sure you're not being misled.

The information on this website does not constitute financial advice, investment advice, or trading advice, and should not be considered as such. MakeUseOf does not advise on any trading or investing matters and does not advise that any particular cryptocurrency should be bought or sold. Always conduct your own due diligence and consult a licensed financial adviser for investment advice.